Home Equity in the Honolulu Real Estate MarketThan Merrill highlights in Fortune Builders.com (http://www.fortunebuilders.com/honolulu-real-estate-market-trends/#) the very reason that investors continue to seek property in Honolulu: Rate of Appreciation. While our home prices are outrageously high, home equity builds at an astounding rate, and investment in housing has been outpacing what is being realized in the U.S. financial markets. Consider the following statistics, cited by Merrill, that compares Honolulu to the U.S. national average:
The National Association of REALTORS website (realtor.org) reported Honolulu as being among the five most expensive housing markets in the fourth quarter 2014, with median sales prices as follows: San Jose Metro at $855,000; San Francisco at $742,900; Honolulu at $701,300; Anaheim-Santa Ana at $688,500; and San Diego at $493,100.
Considered to be among the most severely unaffordable housing market in the world, the convincing factor for buying here is clearly the rate of appreciation that our residential housing offers, particularly if the property is held for three or more years. Low inventory has been driving the prices higher across the island of Oahu for the past several years, with the February 2015 median sales price for single family homes at $648,000.